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Algorand Will Grow as Its List of Partners and Developers Increases

Algorand (CCC:ALGO-USD) was a standout performer in the second quarter of this year. Its success can be attributed to its impressive list of partners and developers who help foster growth within the Algorand ecosystem. Cryptocurrency investors may be in luck with ALGO. Cryptomarkets are notoriously unpredictable and often produce wild fluctuations that could spell trouble for any investor. But Algorand is one potential digital asset you can count on. If you want stability with your portfolio, you need a consistent performer.

A logo for Algorand (ALGO) on a patterned background
Source: Shutterstock

Algorand is one of the most undervalued blockchain networks, and it has major benefits for creating central bank digital currencies (CBDCs). It’s cheap to use as well. The network also scales quickly with impressive features that are easy enough for any novice user or developer alike—making this platform primed for success when compared against other more complicated protocols out there today.

Why Buy Algorand?

ALGO has shown that it is a successful investment with impressive triple-digit returns year-to-date. The cryptocurrency saw some major losses throughout 2019. But gains during the summer eroded those losses and then some.

ALGO continues to be a major player in the native space, with more than 1200 transactions per second. Moreover, developer programs and Algorand’s efforts to scale faster are driving up the price. Consequently, ALGO becomes an excellent digital coin to invest in for the long term.

Two organizations are responsible for developing Algorand. Algorand Foundation oversees all funding and development-related activities for this project. This includes educational outreach programs in universities and setting up developer events to teach people through developer education in universities and educational settings.

Meanwhile, Boston-based Algorand Incorporated is managing the Algorand platform. Cryptographers and mathematicians are employed to help ensure that information is securely stored and transferred across networks. All of this ensures Algorand a very solid platform.

Consider the Risks Involved

Founder Silvio Micali capped ALGO at 10 billion coins. Subsequently, all coins were distributed amongst a select few in seed forms like Bitcoin (CCC:BTC-USD) or Litecoin (CCC:LTC-USD) before release. The digital coin will only get support for another nine years. Beyond that point, the panic will set in for investors.

Algorand continues to do well among developers. However, it is not in the Ethereum (CCC:ETH-USD) category as yet. Developers will likely continue using Vitalik Buterin’s blockchain at the end of the day. So, applications built on Algorand one may not gain traction unless developers find other uses for them, or their popularity grows tremendously through word-of-mouth promotion from loyal users who love what they’ve created.

However, Ethereum is the top choice for DAPP developers and you cannot take that away from it. ALGO will remain in its shadow for some time to come. Again, it doesn’t mean Algorand cannot catch up to Ethereum at some stage. But the first-mover advantage is not something easily overcome.

Long Term Trends Are in Its Favor

In the long term, ALGO prices are likely to increase as they’re a finite resource. Investing in assets is always a risk. But it’s important to remember that if you invest wisely in cryptos, you can make a lot of money. It is tough to make predictions.

Still, in the case of Algorand, you have several reasons to invest. It has a tremendous number of use cases encompassing everything in terms of infrastructure, supply chain, and so much more. From the gaming industry to financial institutions, it seems like there is no end to what the technology can do. Just as an example, look at the non-fungible tokens (NFTs) space. Million of NFTs are going live on Algorand. And the momentum will not stop anytime soon.

NFTs generate passive income and sell for huge sums of money. ALGO powers Algorand. Consequently, it will lead to higher demand for the token because NFTs will positively impact its price.

This is just one example. Algorand has innumerable enterprises that can verify its authenticity, reliability, and safety. More will prefer Algord over other competitors as it offers a high level of scalability with low costs in terms of energy consumption for running nodes on the network. It is a net positive for the token.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.

Article printed from InvestorPlace Media, https://investorplace.com/2021/11/algorand-will-grow-as-its-list-of-partners-and-developers-increases/.

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